Macklem, speaking to reporters Friday after the annual meetings of the International Monetary Fund and World Bank Group in Washington, said his talks there reinforced a commitment for central banks to “keep a steady hand and keep focused on price stability.”
The comments reinforce the Bank of Canada’s discomfort with elevated price pressures and its commitment to keep raising borrowing costs alongside its global peers, even amid financial volatility caused in part by the meltdown in U.K. markets. Characterizing the mood at the meetings as one of both “concern” and “resolve,” Macklem noted elevated uncertainty stemming from unresolved supply chain issues, energy price volatility and recent liquidity problems. “There’s also concern about possible unintended consequences of the needed tightening in financial conditions,” Macklem said, citing turmoil in metals, energy and U.K. pension markets.
He is hinting anither 2% increase in interest rates by end of the year and more next year. If you have a mortgage coming up for renewal in next 2 or 3 years, good luck!
Awesome. All for a virus that caused 0.06% excess deaths in the population.
For those people that don't understand it, soon mortgage rates will be at 8% for a 5-year term. To get demand to ease means companies and people will need to hurt. i.e. bankruptcies and foreclosures!! i.e. Think 2008/2009 recession, be prepared! You have been warned!👀🙄
AnnieClaireBO Shocking.